VDR security is a vital factor to be considered by many companies looking to establish an online repository for their documents. The most secure virtual data rooms provide many features that are designed to safeguard sensitive information against breaches and violations of compliance. They include advanced encryption both in transit and in rest with user-specific user permissions, discrete logging of all document activities and detailed audit trail. Some providers provide additional document-specific tools, like blind viewing and watermarking in order to prevent unauthorized printouts.
VDRs are mostly used to facilitate M&A transactions, but can be beneficial for any business who needs to share sensitive data with external third parties. When third parties, such as outside auditors or legal counsel are required to look over confidential documents, businesses require an easy platform to use.
Financial and real estate services usually require sharing large amounts of documentation with potential investors, lenders and other stakeholders. These include blueprints, financial documents, and property information. Traditional file sharing tools such as email or cloud storage aren’t designed to handle this amount of sensitive information. They also don’t provide the required permission settings, auditing capabilities, or secure collaboration options.
In this case, a virtual data room is the sole tool that meets all these requirements and offers round-the-clock access to users who are authorized. A VDR ensures that sensitive data is handled in line with the ever-changing laws. This allows you to be confident that your business is always compliant.
